Alpharma: New Platform for Growth

1. Alpharma: New Platform for Growth March 21, 2006Four Seasons Hotel57 East 57th StreetNew York, NY 10022

2. Welcome Kathy MakrakisVice PresidentInvestor Relations

3. Forward Looking Statement Statements made in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to future financial expectations, involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Information on other significant potential risks and uncertainties not discussed herein may be found in the Company’s filings with the Securities and Exchange Commission including its Form 10K for the year ended December 31, 2005.

4. Webcast Information and Presentation Assumptions This presentation is available in a listen only mode via the internet at http://www.streetevents.com, http://www.companyboardroom.com, or http://www.alpharma.com until March 24, 2006. These materials are meant for use only in connection with the oral presentation being made by the company at its analyst meeting on March 21, 2006 as many assumptions, risks and other facts material to the understanding of these slides will be presented at the conference. Since these materials were prepared specifically for the March 21, 2006 conference, the company does not undertake to update this material for developments, risks or circumstances after that date. The potential revenue opportunity related to growth initiatives in this presentation are based on assumptions which the company believes to be reasonable, but because they cover several years and, in many cases represent the estimated targets for new strategies, or the introduction of new products, they are subject to inherent risks, including risks disclosed in the company’s most recent 10K filing, that could cause actual results to vary materially.

5. Agenda Each Business Segment Session Will Include Time for Q&A

6. Company Overview Ingrid WiikVice ChairmanPresident and CEO

7. Branded18% API24% AH58% API37% AH46% Branded17% Specialty Pharmaceutical Businesses • Branded • Kadian®: extended release morphine product • Growing Kadian® prescriptions and market share • Active Pharmaceutical Ingredients • Fermentation and purification expertise • Animal Health • A worldwide leader in the treatment and prevention of diseases in food producing animals High Margin Businesses with Growth Opportunities

8. Growth Strategy • Branded • Build pain franchise – invest in products to leverage sales force • Develop next generation abuse deterrent products and expand drug delivery technology • API • Launch additional high purity fermentation-based active ingredients and expand into specialty-injectables • Through Asian alliances, develop and produce new products and expand existing capacity and drive world class cost • AH • Leverage market reputation to deliver new MFA’s via licensing and acquisition of products • Offer existing molecules with different delivery systems and with new indications New Focus + Investments to Drive Growth

9. Growth Potential • 2001 – 2005 growth of our current Specialty Pharma businesses • Revenue: CAGR 8% • Operating income: CAGR 29% • We now have the financial resources to accelerate our growth opportunities Targeted Organic Growth Opportunities Represent Revenues of $700M+

10. Financial Overview Matthew FarrellExecutive Vice President and CFO

11. ALO Financial History $ in millions CAGR 8% CAGR 29% Established Growth * Excluding asset and goodwill impairments

12. Cash Available for Investment $ in millions Estimated $400 Million Cash Available for Investment

13. 2006 OutlookFull Year 2006 EPS $1.25 - $1.35 • Brand • Continued KADIAN® prescription growth • Phase II Clinical Trials for abuse-deterrent product - $15 - $20 million incremental R&D • Increased KADIAN® SG&A infrastructure to support high growth business • API • Launch fluticasone in Q3 2006 • Launching 1-2 more new molecules by Q4 2006 • Animal Health • 5 new product launches in 2006 • Corporate/Unallocated • 2006 outlook includes $12 million ($0.14 EPS) of predominantly one-time 2006 expenses • $3 million ($0.04 EPS) of stock option expense also included in 2006 outlook • Outlook adjusted for one-time expense • EPS: $1.39-$1.49; EBITDA $154 million - $162 million

14. Animal Health Carol WrennPresident Animal Health Division

15. What We’ll Talk About • Business and market overview • Competitive landscape • Growth initiatives • Expanding share • New product pipeline • Wrap up

16. Animal Health business has strong margins, solid customer relationships, brand recognition, but until 2005 had low historical revenue growth.We believe we are on a new trajectory.

17. Animal Health • AHD specializes in products for the treatment and prevention of diseases in food producing animals, with a strong portfolio addressing intestinal and respiratory issues • Market leader in medicated feed additives (MFA’s) and Water Solubles: products added to animal feed or drink to promote good health • Products sold directly to major poultry and livestock producers or through distributors • Major products include bacitracin, chlortetracyline, lasolocid • Sold under brand names BMD®, Albac®, Aureomycin®, Avatec®, Bovatec® Stable Niche Business with Strong Market Position

18. Water Solubles 6% MFA's 12% Pharmaceuticals Biologicals 66% 22% Animal Health Market Global Market by Major Product AH 2005 Revenues $13.7B* $325M MFA’s94% Current Business MFA – Opportunity in Pharmaceuticals *Excludes Vitamins

19. Animal Health Market Sales by Region ($B) Sales By Species ($B) Total Mkt . MFA Mkt TotalALO ShareTotalALO SHARE Poultry 1.6 10% .59 27% Cattle 3.7 2% .32 20% Swine 2.3 3% .54 14% Horses 0.5 --- --- --- Sheep 0.6 --- .07 --- Dogs & Cats 4.6 --- .07 --- Others 0.4--- --- --- Total $13.7 2.4% $1.6 19% Total Mkt . MFA Mkt MktALO ShareTotalALO Share N. America4.7 4% .61 30% Asia 2.7 1 % .42 5% L. America 1.5 2 % .17 19% EMEA 4.81 %.4012% Total $13.7 2.4% 1.6 19% ALO has Leading Position in MFA’s….Opportunity to Expand by Species and Region * Source 2005 WoodMckensie

20. Animal Health Performance Revenues ($M)* Operating Income ($M)* 12.8% 89% 46% 2.5% 2005 Revenue Growth Driven Primarily by Share Gains OI Reflects Dramatic Margin Improvement *Excludes divested operations

21. Intestinal (Enteric) Product Offering Protozoal Disease Bacterial Diseases • COCCIDIOSIS (Eimeria) • Avatec • BioCox • Bovatec • Deccox • Cycostat • Cygro • Nicarb • Zoamix • 3-Nitro • Poultry Sulfa • SulQNox • ENTERITIS (Clostridia) • Albac • Alcare • Aureomycin • Bacivet-S • BMD • BMD Soluble • Lincomycin Sol • DYSENTERY (Serpulina) • Albac • Alcare • BMD • BMD Soluble • Lincomycin Sol • ILEITIS (Lawsonia) • Aureomycin • COLIBACILLOSIS (E. coli) • NeoSol • TetSol Good Franchise in Enteric Diseases - 55% of Business

22. Respiratory Product Offerings Bacterial pneumonia Mycoplasma pneumonia • PASTEURELLOSIS, BRD (Pasteurella) • Aureomycin • Linco Soluble • CTC HCl • Oxytet Soluble • Poultry Sulfa • TetSol • MYCOPLASMA PNEUMONIA • Aureomycin • Oxytet Soluble • TetSol A Good Base in Respiratory Treatments - 30% of Business

23. Today • Technology platform: MFA and Water Solubles • Strong enteric and respiratory portfolio for food producing animals • 2005 results demonstrate ability to grow • Great brand recognition + customer relationships ...SO HOW DO WE SUSTAIN THE NEW TRAJECTORY?

24. Growing the Business • Expanding market share in our current business with existing MFA’s and water solubles • Introduce new product line extensions and new indications • Geographic expansion • New products • To meet current customer needs in current market • To enter new/expanded market segments

25. Expanding Share in Current Business Activities Underway Targeting $50M+ of Revenue Opportunity

26. New Products • New products to meet current customer needs • Intestinal (Enteric) • Respiratory • Expand into new market segments • Companion animals • Dairy cattle Revenue Opportunity of $70M+

27. # of Planned AH New Product Launches Commercializing More Products

28. Product Launch Calendar On Track with New Product Implementations

29. Potential New Product Revenues $ in millions Launching Products Over the Next Three Years with Maturity Value of $70M+

30. Summary • Continue to increase value in existing products • $50M+ opportunity related to additional product indications and geographic expansion • New products/new segments • $70M+ of revenue opportunity Significant Growth Opportunities

31. Animal Health business has strong margins, solid customer relationships, brand recognition, but until 2005 had low historical revenue growth.We believe we are on a new trajectory.

32. Active Pharmaceutical Ingredients Carl-Åke CarlssonPresident Active Pharmaceutical Ingredients

33. What We’ll Talk About • Business and Market overview • Growth initiatives • Expand and improve current business • Introduce new products • Forward integrate • Wrap-up

34. Active Pharmaceutical Ingredients • Produces active ingredients for pharma companies marketing the finished products • Profitable product niches with strong operating margins • ALO proficient in lengthy, complex FDA approval process • Advanced fermentation and purification capabilities with synthesis capabilities in R&D Globally Recognized Supplier of Key API’s Predominantly with Injectable and Topical Applications

35. Biologicals Extracts Biopharmaceuticals19% Fermentation6% Synthetics70% Semi Synthetics5% Remaining APIs25% Baci, Poly,Vanco,70% Contract3% Dosage Form9% API Overview Antibiotics34% Other66% Fermentation and Purification Expertise

36. API Performance $ in millions Revenue Operating Income Bacitracin Price Increase Impact Peaked in 2004 Vancomycin Volume Growthand Tobramycin Launch Mitigated 2005 Price Reduction

37. Strategy Become The Leading Supplier of APIs and End-to-End Solutions for the Injectable Market • Expand and improve our current business • At a minimum, double the number of API products from 10 to 20 in five years • Increase the value of our product offering through forward integration Actively Searching for Value Adding Opportunities

38. Expand Our Successful Current Business • Be market leader in all our products • Deliver best in class customer service through continuous innovation • Customer specific product quality delivered “on time, every time” • Control costs through focused process improvements

39. Double The Number of API Products From 10 to 20 In Five Years • Focus on pipeline management and exploit increased R&D spend • Expand in house API technology platform to include semi-synthetics • Leverage our international R&D and supply chain partnerships

40. Increase The Value Of Our Product Offering Through Forward Integration • Develop capability to offer injectable dosage formulations • Offer all key APIs as finished product solutions

41. Expand and Improve Current Business Vancomycin API Market is Attractive in Size and is Expected to Continue to Grow • Vancomycin is still gold standard treatment for severe gram positive infections • Market has been growing at 3-5% per annum, which is expected to continue • Prevalence is increasing, still under-treatment in many markets • New products in this segment have been introduced at a premium price (10-20 x vanco) • Consequently taken a small volume share • So far expanded the market rather than cannibalized Vancomycin volumes • Some established API suppliers exiting the market • Scale driven or portfolio decisions Competitive Landscape Changing in Vancomycin – API Opportunity of $20M+

42. Expand And Improve Current Business Single Molecule Example of Process Improvement Impact on Total Yield Focused Process Improvements is a Key Success Factor and an ALO Focus Area

43. Expand and Improve Current Business and Introduce New Products Building Asian R&D and Supply Chain Partnerships Under ALO Control • Building Asian partnerships • Technology transfer and business development unit established in Shanghai • Three long term agreements put in place in 2005 / Q1 2006 • Tobramycin non-sterile in China • Mupirocin in Taiwan • Fluticasone in China • More are in progress and agreements should be concluded in 2006 • Range of new API products (immunomodulators) • Range of new API products (Oncology) • Range of new API products (anti virals) • Expansion of manufacturing capacity Commercial Models are Tailor-Made and are Constructed as Win-Win Partnerships

44. Introduce New Products – Development and Technology Strategy Technology Platform Finished Dosage Forms Therapeutic Areas Own development Biologicals Immunomodulators & other Own development building on API technology platform and targeting APIs with injectable application Pre-filled syringes Finished prod. formulation Pain Lyophilized vials Synthesis/ Semi synthesis Oncology Sourcing / licensing Dry Powder fill Licensing APIs selected from specific therapeutic areas, supporting end-to-end development strategy Fermentation Anti infectives Current Future Possible

45. Introduce New API Products Initiatives Underway Target API Revenue Opportunity of $ 50M+ More than 10 Additional Products Currently Under Evaluation / Negotiation

46. Integrating Forward – Securing Growth and Protecting Margins • Lack of manufacturing capacity for freeze dried injectable vials • ALO has expertise from API freeze drying and dry powder fill technologies • ALO has regulatory expertise • ALO has registrations for vancomycin vials (EU and Asia) distributed through Acatavis • ALO is selling CMS dry powder fill vials as private label Total vial market for ALO API products (current and pipeline) in excess of 150M vials Forward Integration into Freeze Dried Injectable Vials Represent Revenue Opportunity for Current and Pipeline APIs in Excess of $30+ Million

47. Integrating Forward - Launching Finished Dosage Form Products as “Private Label” Represents Revenue Opportunity $30M+ Several Additional Products Currently Under Evaluation

48. Summary – Significant Growth Opportunities • Continue to grow opportunities in existing API products • Capitalize on vancomycin market changes - $20M+ revenue opportunity • Double number of API products offered • $50M+ revenue opportunity • Integrating Forward • Freeze dried injectable vials $30M+ revenue opportunity • Launching additional finished dosage form products as private label $30M+ revenue opportunity

49. Branded Pharmaceuticals Ronald Warner, PhD President Branded ProductsJoseph Stauffer, DO Vice President Clinical Research and Medical Affairs

50. What We’ll Talk About • Business and market overview • KADIAN® product and technology • Growth initiatives • Expand current business • Line extensions, new indications, new geography • Add complementary products • Pain and related products • Develop abuse deterrent products • Wrap up